The importance of calculating tax to ensure compliance

International assignments can be highly complicated, but at the same time, in a fast-changing global marketplace, it is important to react quickly and get it right. In the area of international assignments, the tax must be accurately taken into account for the following reasons:

  1. For the employer, if tax implications are not understood, the assignment may cost a lot more to deliver than originally budgeted.
  2. If the employer does not fully understand the tax implications of what it is offering, the package may not deliver what both parties believed it was going to.
  3. As tax authorities begin to target companies operating international assignment schemes as a growing source of revenue, there is considerable “reputational risk” to the employer if they do not manage the compliance of their expatriate policy.

When ensuring compliance in your international programmes, there are many issues to consider.

IPM takes care of all tax and social security issues on your behalf and the assignees. This ensures full compliance with all rules and requirements. If you wish to speak further in regard to this, then please contact our Operations Team, where a Consultant will happily answer any questions you may have. For further information, you can reach us at [email protected]